Analysts give Procter Gamble, the consumer products firm, an equity beta of 0 65 The risk free rate is 4 0 percent An analyst calculates an equity cost of capital for the firm of 7 9 percent using the capital asset pricing model (CAPM) 'What market risk premium is she assuming

Question: Analysts give Procter & Gamble, the consumer products firm, an equity beta of 0.65.The risk-free rate is 4.0 percent. An analyst calculates an equity cost

Analysts give Procter & Gamble, the consumer products firm, an equity beta of 0.65.The risk-free rate is 4.0 percent. An analyst calculates an equity for the firm of 7.9 percent using the (CAPM). 'What market risk premium is she assuming?

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